REQUIREMENTS OF FEDERALLY FUNDED PURCHASES Reference: APM Section A8.290 (November 2006)

1. REQUIREMENTS OF FEDERALLY FUNDED PURCHASESReference: APM Section A8.290(November 2006)

2. When do you use Federal Flowdown Provisions? • Subcontract or Purchase Order issued under afederal prime contract, attach & reference: “FEDERAL PROVISIONS (JULY 2006)” (Attachment 290.1) • Subcontract or Purchase Order issued to an educational ornonprofit organization under acost-type prime cost reimbursable contractand if thesubcontractor is in possession of government property, attach and reference: “FEDERAL PROVISIONS APPLICABLE WHEN SUBCONTRACTOR (EDUCATIONAL OR NONPROFIT ORGANIZATION) IS IN POSSESSION OF GOVERNMENT PROPERTY (JULY 2006)” (Attachment 290.1a)

3. Subcontract or Purchase Order issued to acommercial entityunder acost-type prime cost reimbursable contractand if thesubcontractor is in possession of government property, attach and reference: “FEDERAL PROVISIONS APPLICABLE WHEN SUBCONTRACTOR (COMMERCIAL ENTITY) IS IN POSSESSION OF GOVERNMENT PROPERTY (JULY 2006)” (Attachment 290.1b)

4. Purchase Orderissued under afederal grant, attach and reference: “TERMS AND CONDITIONS APPLICABLE TO PURCHASE ORDERS (UNDER FEDERAL GRANTS) (JULY 2006)” (Attachment 290.2) • Subcontractissued under afederal grant, attach and reference: “TERMS AND CONDITIONS APPLICABLE TO SUBCONTRACTS (UNDER FEDERAL GRANTS) (JULY 2006)” (Attachment 290.2a)

5. Cite the following statement on all federally funded subcontracts and purchase orders: “Federally funded purchase pursuant to (cite federal contract or grant/cooperative agreement), and attached (cite applicable federal flowdown provisions).” • Acopyof the applicable federal flowdownprovisions should be retained in theprocurement file.

6. Advance Notification When entering into a subcontract that exceeds $100,000 under all non-DOD and non-NASA prime Contracts: • Step 1. Notify federal contracting officer pursuant to FAR 52.244-2, Subcontracts, Alternate II.

7. Step 2. Provide to the federal contracting officer the following information: • A description of supplies or services to be subcontracted; • Identification of the type of subcontract to be used; • Identification of the proposed subcontractor; and • The proposed subcontract price.

8. Screening Procedure • Equipment • $5,000 - $25,000:Departmental screening • $25,000 or more:University-wide screening UH FORM 39, Authorization to Purchase Equipment with Federal Contract or GrantFunds(Attachment 290.3)

9. Waiver of General Excise Tax Applies to: • Subcontracts for performance of scientific work • Purchases of tangible personal property under the contract Two methods to obtain exemption: • Vendor may apply directly with Dept. of Taxation • UH may make preliminary determination

10. Procedure. • Statement to be included in RFQ/IFB/RFP: “The University has determined that this purchase is exempt from the payment of State of Hawaii general excise tax in accordance with section 237-26, HRS. Therefore, the vendor shall exclude such tax from the quotation price.” • Statement to be included in Purchase Order. “The University of Hawaii has determined that this purchase is exempt from the payment of State of Hawaii general excise tax in accordance with section 237-26, HRS. The price of this purchase shall not include such tax. In the event of disallowance by the State Department of Taxation, the University will be liable for payment of the amount disallowed.”

11. Debarment Certification • Prohibited from awarding to vendors who have been debarred, suspended, or proposed for debarment by the Federal Government • Purchases exceeding $25,000, either obtain signed certification, OPRPM Form 94 (Attachment 290.4), or check the Excluded Parties List at http://epsl.arnet.gov

12. Anti-Lobbying Certification • Purchases exceeding $100,000, vendors must sign OPRPM form 133(Attachment 290.5).

13. Small Business Document Solicitation: • Purchases over $100,000 • Purchased under federal prime contract

14. Document Solicitation in Procurement file: • Whether small business concernswere solicited and, if not, why not; • Whetherveteran-owned small business concernswere solicited and, if not, why not; • Whetherservice-disabled veteran-owned small businesswere solicited and, if not, why not; • WhetherHUBZone small business concernswere solicited and, if not, why not;

15. Document Solicitation Procurement in file: • Whethersmall disadvantaged business concernswere solicited and, if not, why not. • Whetherwomen-owned small business concernswere solicited and, if not, why not. • If applicable, the reason award wasnot made to a small business concern.

16. CLOSE OUT PROCEDURES • Obtain final report of inventions when subcontract involves research and a report is required; • Obtain final report of government property when applicable and obtain government disposition instructions;

17. When classified information is provided, ensure proper disposition; • Ensure that required financial reports and/or final vouchers with release & assignment are submitted and that costs are determined to be reasonable and allowable in accordance with award requirements.

18. Defense Priority and Allocation Requirements • Reference: FAR 52.211-15 • For subcontracts and P.O.’s under DOD prime contracts, certain elements to be included. (AP A8.290.10)

19. Payment of Allowable Costs and Fixed Fee • Costs plus fixed fee subcontract • FAR 52.216-7, Allowable Cost & Payment • FAR 52.216-8, Fixed Fee • Identify amount of fixed fee (as well as amount of estimated cost) • Clause at AP A8.290.11 must be incorporated.

20. ANY QUESTIONS?